Legal Recreational Cannabis Sales Begin in Montana

Source: Shutterstock

When the calendar turned to learn “2022,” leisure marijuana hit the cabinets in Montana. Consumers wasted no time earlier than getting their palms on the now-legal product, with pot gross sales topping a whopping $1.5 million after simply the primary weekend. Seeing that the stuff is taxed at a 20% charge, these gross sales generated $313,000 for the state. 

The Governor’s funds workplace estimates these numbers will climb to about $130 million by the top of the yr and might be extra like $195.5 million in 2023. That’s all on high of gross sales of medical marijuana, which is taxed at a 4% charge, and has resulted in over $430,000 of gross sales, producing $17,000 in gross sales tax income. 

Individual locales also can implement a 3% gross sales tax. Yellowstone, Park, and Dawson Counties all plan so as to add that tax to each medical and leisure marijuana; Missoula County could have it for leisure solely.

What to Expect

Voters selected to legalize adult-use marijuana within the November 2020 election, permitting adults over the age of 21 to own as much as an oz of hashish, as much as 8 grams of focus, or edibles containing as much as 800mg of THC. Montanans also can have as much as 2 mature vegetation and a couple of marijuana seedlings of their houses. The marijuana flower is capped at 35% THC, and packages of edibles can not comprise over 100mg of THC every. 

The Montana Cannabis Guild, a bipartisan staff of trade professionals, former elected officers, and insiders within the political realm created Initiative 190, and now proceed to combat for dispensary house owners and shoppers. 

“We couldn’t be more proud of this accomplishment, and its success only further demonstrates the striking failures of cannabis prohibition,” the Guild stated after the invoice’s passage and eventual implementation.

If you’re nervous about your info being logged, you’re in luck; Montana’s legal guidelines dictate that dispensaries should examine your ID to show you’re over the age of 21, however they’ll solely maintain that file for as much as 180 days and can’t share that info with the state or any third celebration. 

Montana was comparatively speedy in giving clients entry to authorized leisure marijuana — it solely took a few yr. In 2021, the state legislature handed HB701, a invoice saying marijuana must be obtainable for leisure use by January 1st, 2022, and so they managed to maintain that deadline.

Republican Governor Greg Gianforte vowed when he signed the invoice that hashish in Montana shall be managed in a “protected, accountable, and appropriately regulated method. 

Montana Governor Greg Gianforte sitting on a wooden bench in nature

Source: US House Office of Photography

HB701 additionally dictates how all of the gross sales tax income shall be spent. Some Democrats initially voted towards the legalization of leisure marijuana as a result of the invoice, as written, doesn’t fund conservation packages they’d hoped to assist with. 

A big portion of it goes to the Healing and Ending Addiction by way of Recovery and Treatment (HEART) Fund, a drug therapy program that offers out cash the state earned by way of marijuana gross sales tax to totally different native organizations or non-profits specializing in substance abuse care and prevention companies.

The Governor’s workplace is hopeful that the HEART Fund, mixed with tobacco settlements and federal Medicaid {dollars} might result in a $25 million examine headed every year to assist with therapy of substance abuse. 

To begin, although, the primary $6 million of gross sales tax income will go to HEART, except for $500,000 going to Indian Health Services in Montana. Once the $6 million hurdle is cleared, the subsequent 20% goes to the Montana Department of Fish, Wildlife, and Parks. That’s meant to assist fund habitat for wildlife.

From there, 4% goes to State Parks, 4% to the upkeep for the Trails division, and 4% to Nongame Wildlife Programs and Accounts. The state has now arrange an account for veterans and their surviving spouses, which is able to get 3% of the marijuana gross sales tax income. The Montana Board of Crime Control will get $150,000 even for disaster therapy coaching. Any remaining cash is ready to be put into the state’s General Fund. 


Right now, solely companies that already had medical marijuana licenses earlier than the November 3rd 2020 election shall be allowed to promote leisure marijuana. That’s the case till July 1st, 2023, when new companies can begin making use of for permits. Some trade leaders concern that would create some provide chain points because the medical marijuana companies attempt to enhance their manufacturing by an unlimited margin to maintain up with the grownup use demand. 

The Department of Revenue has 30 days to course of functions as soon as they’re submitted. Medical and leisure marijuana is allowed to be offered on the identical web site. There shall be 13 totally different cultivation licenses, or “canopy” choices for cultivation services of various sizes. There are separate licenses for cultivators, producers, dispensaries, transporters, and testing laboratories. Employees of marijuana-related companies additionally want particular work permits.

The outside of the Flower Dispensary in Missoula Montana

Source: @FlowerMMJ

Although Initiative 190 handed with a large margin of 56% in favor and 43% towards, leisure marijuana gained’t be obtainable in every single place within the state. Montana permits voters in so-called “red counties” to decide out of authorized leisure gross sales. Voters also can select in a while to alter their tune. 

Likewise, “green counties” (we assume no pun was meant) the place the vast majority of voters within the space supported legalization could have marijuana on the market. That consists of 29 counties in Montana, in comparison with 27 crimson counties. However, it ought to be famous that the crimson counties are largely rural, so 90% of the state’s inhabitants lives in inexperienced areas.

Those companies shall be allowed to be open from 9:00 a.m. to eight:00 p.m. and any gross sales should be put in a reusable plastic child-proof bag.

Problems Already Starting

Although authorized marijuana gross sales for adults simply began up, Montana’s Cannabis Control Division is already warning of a rip-off the place folks pretending to be with that company persuade folks they owe cash that must be despatched over instantly. The CCD says it can solely concentrate on regulation and compliance whereas it carries out inspections, and that it’s going to at all times go to these inspections in-person in state-issued automobiles, and that any issues with unpaid taxes shall be mentioned with the Provider, not demanded instantly. 


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